Promeco – technology and innovation as the foundation for sustainable growth

The APS system elevates production management to a new level

According to Lauri Kaminen, CTO of Promeco, the purchase of an APS system was initiated when Promeco recognized the impact of changes in the operating environment in recent years on the supply chain and production capacity management.

– The ERP system simply did not have the capacity to handle the changes. We needed a system that could manage changes in things like component availability, capacity, and resources. This is the information we need to make operational decisions in production management quickly and efficiently.

Kaminen says that once they started looking into the issue, it became clear that today’s production control and management systems have come a long way in recent years, and that system projects are no longer the massive worksites they were 10 years ago. On the other hand, business requirements are constantly growing, and investments in systems and technology development are needed to keep the company a pioneer in its industry. According to Kaminen, Promeco is investing heavily in business-critical systems such as production planning, manufacturing technology and sales tools.

A market survey highlighted suppliers’ strengths

The system acquisition started with an extensive market survey.

– We found that there were about a dozen APS systems in the world that were worth considering. In a global environment, it was not a requirement that the supplier be Finnish, but it did bring extra points in the evaluation.  

One of the main requirements for procurement was the system’s ability to anticipate. For example, the system had to be able to assess possible material shortages that could prevent the production plan from being implemented. According to Kaminen, ERPs would show these shortages after the plan was completed, but not proactively to support its implementation.

The requirements for the system were divided into three categories: detailed production planning, rough scheduling, and resource planning. Under each of these categories were a number of different requirements, such as ease of use, different classification criteria, and manual and automatic scheduling of production planning. In addition, each of the four Promeco plants using the system was asked to rate and rank the most important features for their operations.

– Pinja’s iPES system best met our requirements. Our operating environment has changed a lot, and, for example, resources may change for reasons beyond our control. We need to be able to manage production in reasonably real time and iPES allows our production planners to do that.

Tangible targets allow success to be measured

According to Kaminen, the implementation of iPES was a significant system investment for Promeco. Clear objectives for the benefits of the system were already set at the procurement stage. Some of the targets were more general productivity targets, such as the ability to optimize production or to improve management and operational decision-making in production planning.

Numerical targets were also set together. 

– For example, we wanted to reduce the amount of capital tied up in inventory. During our challenging years, inventory values increased, and, naturally, so did storage costs. 

Another concrete goal was to free up time of production planners for the situations where they are most needed. The third major goal was to reduce unplanned costs, such as overtime or extra logistics costs.

According to Kaminen, the best benefit of tangible goals is their measurability. Success and progress towards the set targets are monitored on a quarterly basis, together with users and production managers. 

iPES brought immediate improvements to production planning and material management

iPES was introduced in Finnish and Polish factories in the spring of 2024. According to Kaminen, the benefits of the system became apparent immediately after its implementation.

– After the system was implemented, communication between production planning and operational sourcing was immediately streamlined. On the very day the system went live, deficiencies of components that would prevent the production plan from being implemented were proactively identified. The information was passed to the operational sourcing department, where the material shortages were quickly resolved.

Users of the system have also found iPES to be a good solution. As an example, Kaminen highlights the Gantt view of the production plan, which can be changed quickly and efficiently by the planner. The color schemes are quick and easy to use and update. The production optimization algorithm was easily adapted to Promeco’s needs. 

The ease of use of the system was also praised, even though it has a lot of different functions. The system is easy to navigate, and as the reliability of the system continues to improve, we will be able to fully exploit its potential.